In order to fulfill the reversible charge-discharge of the LFO,better understanding of the delithation reaction of LFO is required. In this work a series of comprehensive in-situ characterizations of the LFO electrode during the first charge were performed to understand the crystal structure, valance and bonding as well as the electronic structure evolution of LFO upon the Li removal. These studies indicate that the first charging of LFO can be divided into two stages. Stage I is a two-phase reaction in the first charging plateau, where the antiflorite LFO converts to pseudo-cubic Li3FeO4 (Li5FeO4→2Li++2e+Li3FeO4), and the oxidation state change of Fe and O in Stage I can be expressed as: Fe3+ →Fe(3+δ)++δ e- and 4O2- →4O(1.5+0.25δ)- +(2-δ)e-. Stage II is a one-phase reaction in the second plateau, with pseudo-cubic Li3FeO4 converting into pseudo-cubic LiFeO2 (Li3FeO4→2Li++2e+O2+LiFeO2) and the releasing of one O2 from the Fe-O framework. The valance evolution Fe and O in Stage II can be expressed as: Fe(3+δ)++ δ e- → Fe3+ and 4O(1.5+0.25δ)-→2O2-+O2+(2+δ)e-. Theoretical modeling confirms the formation of pseudo-cubic phase and O2 releasing in the second stage. High energy barrier was found for conversion from the pseudo-cubic phase back to antiflorite phase with lithiation and the O2 absorption, explaining the irreversibility of the LFO.